The gold price is facing headwinds for a third straight day today as investors await an interest rate decision from the US Federal Reserve followed by a monetary press conference.
Overall gold has made some solid gains over the past 2 weeks on the back of US dollar weakness and although the precious metal has been under pressure for the past few trading sessions, many expect the uptrend to continue.
No rate changes are expected from the Fed today so all eyes will be on the following statement, which many expect to be less than enthusiastic on the back of recently released inflation figures which currently sit below the Fed’s target rate.
This event may be the catalyst for gold continue its rise as it may signal the end of rate rises this year from the Fed.
Gold has faced stiff resistance at the $1,260 level as we can see on the chart and has found good support at $1,246 which is expected to hold until the speech from the Fed. If as predicted the announcement is dovish gold, should finally break the critical $1,260 level and push significantly higher with $1,260 becoming the new support level